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NEWS UPDATES Asean Affairs    15  June  2016  

VN top Japan investment locale

A recent survey conducted by Mizuho Research Institute of 1,100 companies in Japan shows growing interest in Việt Nam as an investment priority among ASEAN countries.  

More than 53 per cent of the enterprises participating in the survey said that Việt Nam was their ideal investment destination, with Thailand ranking first, with 59.7 percent.

The confidence rate in the Vietnamese market increased by 4.9 per cent compared with last year’s survey.

The poll also found a reduction of 2.2 per cent in the confidence rate for the Thai market compared to last year.

Nearly 49 per cent of Japanese companies with registered capital of more than 10 million yen chose ASEAN as an overseas investment priority, the survey found.

Japanese investors said that Việt Nam’s membership in the Trans-Pacific Partnership trade agreement was an incentive for them to invest in Việt Nam.

Nearly 13 per cent of the respondents said they would choose Việt Nam first as an investment destination among the 12 member countries of ASEAN.

Of the 12 countries that have signed the Trans-Pacific Partnership, which includes Việt Nam, Japan and the US, more than 10 per cent said they would invest only in Japan, and 4.9 per cent in the US.

Another survey of 1,027 Japanese enterprises conducted early this year by the Japan External Trade Organisation (JETRO) showed that more than 60 per cent of Japanese enterprises investing in Việt Nam had plans to expand their business in the country.

About 85 per cent of the enterprises said they would expand to increase revenue, while 65 per cent said they saw high potential for economic growth in Việt Nam.

JETRO said that Japanese enterprises considered the ASEAN Economic Community, which simplifies customs procedures, reduces tariffs among members and offers employment mobility, to be an incentive to further invest overseas.  

About 60 per cent of the respondents said they were earning profits in Việt Nam.

Japanese enterprises said they wanted to invest in Viet Nam as it continues to enjoy strong growth, especially with the signing of more trade agreements.

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By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

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